What is Permanent Account Number (PAN)?

A Permanent Account Number (PAN) is a unique, ten-digit alphanumeric code issued by the Income Tax Department of India. It serves as a crucial identification tool for individuals and entities engaged in financial transactions. PAN is primarily used for tracking tax obligations and preventing tax evasion. It is mandatory for various financial activities, such as filing income tax returns, opening a bank account, and conducting high-value transactions.

Documents Required for PAN Card Application

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To apply for a PAN card, applicants must provide specific documents that serve as proof of identity, address, and date of birth. The following documents are typically required:

1. Proof of Identity (any one of the following):
   • Aadhaar card
   • Voter ID
   • Passport
   • Driving license
   • Government-issued photo ID
2. Proof of Address (any one of the following):
   • Utility bill (electricity, water, gas, etc.)
   • Bank statement
   • Rent agreement
   • Passport
   • Aadhaar card
3. Proof of Date of Birth (any one of the following):
   • Birth certificate
   • Passport
   • School leaving certificate
   • Aadhaar card
4. Photograph: Two recent passport-sized photographs are usually required.
5. Application Form: Fill out the PAN application form (Form 49A for Indian citizens or Form 49AA for foreign citizens).

Features of PAN Card

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1. Unique Identification: Each PAN is unique to the individual or entity, helping to track their financial transactions and tax payments.
2. Lifetime Validity: Once issued, a PAN card remains valid for the lifetime of the holder, unless it is canceled due to legal reasons.
3. Facilitates Tax Filing: PAN is essential for filing income tax returns, ensuring that taxpayers can be identified correctly by the Income Tax Department.
4. Mandatory for Financial Transactions: PAN is required for a range of financial activities, including opening bank accounts, applying for loans, and making high-value purchases.
5. Prevents Tax Evasion: The PAN system aids in tracking and monitoring tax payments, helping to reduce tax evasion in the country.
6. Linkage with Aadhaar: PAN can be linked with Aadhaar, further simplifying the tax filing process and improving transparency.
7. Digital Verification: PAN details can be verified online, making it easy for individuals and businesses to confirm their identity and financial standing.

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